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QUESTION 34 The MRTS of labor for capital tends to be higher A) the larger the...

QUESTION 34
The MRTS of labor for capital tends to be higher
A) the larger the quantity of capital already employed
B) the lower the quantity of capital already employed
C)when a firm is choosing baskets that are inefficient
D)in the short run compared to the long run

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Answer #1

Ans) the correct option is a) the larger the quantity of capital already employed

MRTS shows the rate at which the quantity of capital can be reduced for every one unit increase in quantity of labor,

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